Is outsourcing to India affordable?

Cost savings may be the primary thought in the mind of most CEOs today, during this economic crisis. Cost has to be saved if organizations have to survive during these tough times. One option that you can consider is outsourcing to India. Outsourcing a part of your non core business processes to Indian offshore providers can help you maintain your level of quality while cutting down on your operating costs.

But is India really affordable? Can I get my work done at India at a cost-effective price? If these are the questions that are running through your mind, here are some thoughts on how India is able to provide quality services at a cost-effective price.

1. India has a large number of educated and computer-literate professionals who have an excellent command over the English language.  You cannot get access to such a workforce in any other place other than India. So by outsourcing to India, you can benefit from expert & error-free services at a cost-effective price.

2. If you have to conduct all your non-core processes in-house, you will have to buy new software, invest in technology and buy more office space. All this will cost you a lot of money. Since Indian offshore providers have the latest in software, technology and infrastructure, you can save on these costs.

3. Hiring and training new employees is not just time consuming but is also very expensive.  Why spend so much on your non-core processes when you can outsource them to an Indian offshore center. Your partner in India will be bearing the cost of finding, hiring and training new employees, helping you to cut down more on your costs.

4. If you are to conduct your non-core processes in-house, you will also have to setup a Quality Assurance team to ensure quality and to detect errors. On the other hand if you choose to outsource to India, you can save on such costs as your offshore Indian partner will be employing a quality team to check for quality.

How much do you stand to gain by outsourcing?

Almost all of your non-core processes can be done flawlessly in India for just a fraction of the cost! Recent statistics have shown that software companies outsourcing to India have been able to meet their cost saving goals (between 80 -100 percent) after outsourcing a few of their non-core processes to India.

A recent ‘Software & Information Industry Association’ report on global software development reported that 75 % of US companies that outsourced their services to India reported a positive impact on their revenue, while 88% of US software companies reported a positive impact on their profits.

So, have you made up your mind about outsourcing to India?

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